Tax: Dividends and Distributions: How are qualified and nonqualified dividends reported on your Form 1099?

Qualified dividends are included in total ordinary dividends.  Dividends that MAY be qualified (eligible for a lower rates) are reported in a separate box on the Form 1099-DIV.   IB does not determine if a customer meets the minimum holding period requirement for the lower rates to apply. Nonqualified dividends including taxable interest dividends, money market fund dividends and short-term capital gains paid from a mutual fund, are reported as ordinary dividends.  Refer to IRS Publication 550 and consult your tax advisor for proper reporting.

In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this FAQ was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer.